Bitcoin Bulls Look to consolidate and Get the Bull Run Going
Bitcoin had a stellar day on Thursday, rallying 14.2%, following Wednesday’s 1.59% gain, to end the day at $7,926.2. It was the 3rd consecutive day in positive territory, with Bitcoin fully recovered from Monday’s sell-off.
It was another day of lateral moves through the first part of the day, with Bitcoin falling to an intraday low $6,753 in the early part of the afternoon, the morning’s $6,975.5 high providing investors little incentive to jump in, despite the upward trend seen since Monday’s late in the day reversal.
Another late evening rally saw Bitcoin bounce to an intraday high $8,087, breaking through the day’s key resistance levels with ease, whilst also managing to come within touching distance of the 60.2% FIB Retracement Level of $8,596.82 to affirm a short-term bullish trend formed at 6th April’s swing lo $6,500.2
Bitcoin may not have held at $8,000 levels by the close, but the moves through the day and the upward momentum through the week continues to confirm the bottoming out last Friday and the beginning of the longer-term bearish trend’s reversal, though much will depend on today’s moves, a reversal to sub-$7,500 levels likely to weigh on hopes of a bull run near-term.
At the time of writing, Bitcoin was down 1.04% to $7,830, with moves through the early part of the morning continuing to support the bullish shift in sentiment from the longer-term bearish trend formed back on 21st March.
An early morning $7,739.1 low, saw Bitcoin hold well above the day’s first major support level of $7,090.47 and more importantly, the 23.6% FIB Retracement Level of $7,712.52, with Bitcoin managing to touch $8,000 at the start of the day, suggesting that more is to come through the latter part of the week.
A move back through to $7,850 would support a rebound to Thursday’s highs, consolidating Thursday’s gains, though for the day’s first major resistance level of $8,424.47 to be tested, sentiment in the afternoon will need to see a vast improvement.
Any pullback to sub-$7,500 levels would bring the day’s first major support level of $7,090.47 into play, with buying appetite at the 23.6% FIB Retracement Level of $7,712.52 dependent upon the broader market, which is mixed at the time of writing.
We will expect Bitcoin to ultimately avoid a reversal to Thursday’s gains, with the sideways move through this morning a positive for Bitcoin and the broader market.
Looking across at the Cboe Bitcoin Futures, the April contract was up $135 to $7,830, providing little influence and taking its moves from Bitcoin. Elsewhere, Stellar’s Lumen was down 4.07%, with Cardano’s ADA and Ripple’s XRP also seeing heavier losses, the trio having been bigger beneficiaries of the market rally on Thursday.
The Bitcoin bulls will be looking for an end of day $8,000, which should bring more side lined investors back to the table and $9,000 into focus.